A renminbi threat to oil?
A major Chinese currency devaluation probably wouldn’t hurt Chinese oil demand as much as some think
Oil demand and stockpiling in China will remain strong this year as speculation, particularly in the West, that Beijing will do a massive 15-20% devaluation of its currency, appears to be just that. Chinese oil consumption and imports are sensitive to price changes – so a renminbi devaluation that made crude more expensive in the local currency would hurt both. But domestic oil demand, in particular, also reacts to GDP. A weaker renminbi would be expected to make exports of Chinese goods more competitive, boosting manufacturing activity. In turn, this would lift demand for diesel (used in manufacturing) and offset any weakness in gasoline. Financial markets have for months been humming with
Also in this section
27 February 2026
LNG would serve as a backup supply source as domestic gas declines and the country’s energy system comes under stress during periods of low hydropower output and high energy demand
27 February 2026
The assumption that oil markets will re-route and work around sanctions is being tested, and it is the physical infrastructure that is acting as the constraint
27 February 2026
The 25th WPC Energy Congress to take place in tandem as part of a coordinated week of high-level ministerial, institutional and industry engagements
27 February 2026
The deepwater sector must be brave by fast-tracking projects and making progress to seize huge offshore opportunities and not become bogged down by capacity constraints and consolidation
